Here are the latest changes that might benefit you:
- More married couples now qualify for the maximum credit in 2014 because the income levels at which the credit begins to phase out have been increased: $20,020 for married couples with no kids, and $43,941 for married couples with one qualifying child, $49,186 for married with two qualifying children, and $52,427 for married with three or more qualifying children. Since the squeeze on the size of the credit starts at higher income levels, married recipients will enjoy a slightly increased credit. And because income thresholds are indexed for inflation each year, it’s possible that still more married couples will qualify for the full credit in 2015.
- Families with three or more qualifying children can qualify for a bigger tax credit. For 2014, those families can get a maximum credit of $6,143. As indexing continues to increase the threshold, families could receive an even larger maximum credit next year.